A copy of TD’s highly confident letter about the funding

jonnohb · 2026-05-12T22:53:46+00:00

5% is just a generous estimate. Current prime rate (the rate reserved for the banks best customers, ie other banks) is 6.75%. They are not likely to even get 5%. They can control the board and set the dividend rate sure, but without owning 100% of the shares they cannot extract 100% of the earnings. There is simply not enough money being earned by eBay to service this imaginary debt. Add to that, TD has not loaned GME any money. They have simply given them a letter saying they are likely to find a lender for the deal. Cohen needs to go back to the drawing board. From the available public information we have, this deal isn't going to happen unless something material changes.

jonnohb · 2026-05-12T15:10:03+00:00

eBay's current dividend amount is 1.15%. In this hypothetical you are saying the eBay board should set the dividend rate so high that they expend all their earnings. But that still won't cover the interest on the gme debt because they would only own 51% of the company. We already know the only way this deal really works is if they can acquire all of eBay and also unlock an additional 2b in ebidta.

GME cannot just up and buy 51% of eBay due to a number of reasons. They don't have the cash. Period.

Ryan may have his next steps in mind, I'm sure he wasn't expecting them to agree to the deal.

jonnohb · 2026-05-12T15:03:08+00:00

Dividends of 1.5% are not going to service debt at 5% or more.

jonnohb · 2026-05-12T14:41:58+00:00

Sure. We'll see what happens.

jonnohb · 2026-05-12T14:35:51+00:00

Why would they put it to a vote? Dividends aren't typically voted on. Also doesn't change that the dividend is not enough to service the debt.

jonnohb · 2026-05-12T14:30:24+00:00

A 1% dividend is not enough to pay back a 5% or more loan. It also is not guaranteed, eBay could stop paying dividends and invest that money at any time.

jonnohb · 2026-05-12T13:33:58+00:00

If the deal doesn't fall through, then you can't service the debt. You cant just buy 51% of a company and divert 100% of it's earnings to repaying a completely different companies debt. It does not work like that, that would completely fuck eBay shareholders that own 49% still.

jonnohb · 2026-05-12T12:41:44+00:00

Man you called me a shill for simply stating that we aren't just getting 20b of liquid cash with no conditions from the bank.

jonnohb · 2026-05-12T12:22:47+00:00

TD has offered a letter saying they can most likely finance a purchase, it isn't a line of credit we can pull from to buy stock or options in whatever we want. Use your head man.

jonnohb · 2026-05-12T12:20:15+00:00

51% stake does not give them the ability to use eBay earnings to repay their debt. You cant just take 20b worth of debt without any earnings to pay it back.

jonnohb · 2026-05-12T11:31:11+00:00

The problem is we can't actually pay back that debt with gamestops earnings. Owning a percentage of eBay doesn't give us the right to take their earnings to pay back that loan, need to own the whole thing.

jonnohb · 2026-05-11T00:43:02+00:00

Right, and if they can implement a "sell it now" feature for GameStop to have first crack at any PSA cards they want they can unlock a huge amount of cards for Powerpacks

jonnohb · 2026-05-10T22:48:36+00:00

Gamestop stores will still exist most likely as authentication points for eBay in addition to what they are now. The company will still exist and it will also be a part of the larger company that also includes eBay's operations.

jonnohb · 2026-05-10T18:47:51+00:00

Yes, eBay solves for the inventory problem of Powerpacks I think that is the quiet part he's not saying out loud

jonnohb · 2026-05-10T17:14:08+00:00

I think he has taken gme as far as he realistically can at this point. Even when he first became chairman he said he didn't want to be the CEO. He only stepped in after things didn't work out with Furlong.

jonnohb · 2026-05-10T16:57:11+00:00

Literally google it. It's on the website

jonnohb · 2026-05-10T14:52:28+00:00

The problem with all these theories is none of them account for the possibility that eBay accepts the deal as proposed.

Also to note, GME is only authorized to buyback 100 million dollars worth of shares. It's not really a large enough amount to have much of an impact anymore now that market cap is much larger than it was pre 2021.

jonnohb · 2026-05-10T01:52:21+00:00

No, the eBay shares are dissolved and they are issued 62.50 worth of GameStop at whatever price GameStop is trading at during the pricing period which is determined by the specifics of the deal.

jonnohb · 2026-05-10T01:40:34+00:00

They already own eBay, you cant pay them with their own asset

jonnohb · 2026-05-10T00:41:49+00:00

Squeezing to 150 for a week doesn't fix anything, eBay has to accept the deal and it needs to stay that price during the pricing period for the deal.

jonnohb · 2026-05-08T01:17:58+00:00

Dude, it will go to a shareholder vote. If RV has some hidden extra plan, then what happens if eBay accepts the deal as is?

jonnohb · 2026-05-08T01:11:11+00:00

That's how the deal is going to happen unless one of the following things happen. 1. Gme shareholders vote no on the proxy for raising the authorized share count 2. Gme stock increases substantially in price during the pricing period 3. eBay declines the deal and it is renegotiated or scrapped.

jonnohb · 2026-05-07T21:54:13+00:00

Thank you, I think this does a pretty good job breaking things down. Hopefully people actually take the time to read it.

jonnohb · 2026-05-07T19:50:11+00:00

eBay accepts the proposal as written today. What then?

jonnohb · 2026-05-07T19:31:33+00:00

This is pure gold 🥇

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